Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Days Wait time 13.2 Inspection time 0.7 Process time 1.6 Move time 0.6 Queue time 2.2 Required: a. Compute the throughput time. (Round your answer to 1 decimal places.) b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.) c. What percentage of the production time is spent in non-value-added activities? (Do not round intermediate calculations. Round your answer to nearest whole percentage.) d. Compute the delivery cycle time. (Round your answer to 1 decimal place.)
Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Days Wait time 13.2 Inspection time 0.7 Process time 1.6 Move time 0.6 Queue time 2.2 Required: a. Compute the throughput time. (Round your answer to 1 decimal places.) b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.) c. What percentage of the production time is spent in non-value-added activities? (Do not round intermediate calculations. Round your answer to nearest whole percentage.) d. Compute the delivery cycle time. (Round your answer to 1 decimal place.)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 40P: The controller for Muir Companys Salem plant is analyzing overhead in order to determine appropriate...
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Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order:
| Days | |
|---|---|
| Wait time | 13.2 |
| Inspection time | 0.7 |
| Process time | 1.6 |
| Move time | 0.6 |
| Queue time | 2.2 |
Required:
a. Compute the throughput time. (Round your answer to 1 decimal places.)
b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.)
c. What percentage of the production time is spent in non-value-added activities? (Do not round intermediate calculations. Round your answer to nearest whole percentage.)
d. Compute the delivery cycle time. (Round your answer to 1 decimal place.)
Transcribed Image Text:Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following
average times were recorded per order:
Wait time
Inspection time
Process time
Move time
Queue time
Days
13.2
Required:
a. Compute the throughput time. (Round your answer to 1 decimal places.)
b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole
percentage.)
a. Throughput time
b. MCE
0.7
1.6
0.6
2.2
c. What percentage of the production time is spent in non-value-added activities? (Do not round intermediate calculations. Round
your answer to nearest whole percentage.)
d. Compute the delivery cycle time. (Round your answer to 1 decimal place.)
c. Percentage of non-value-added activities
d. Delivery cycle time
days
%
%
days
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